Stamp Duty Land Tax: buying an additional residential property
You may have to pay a higher rate of Stamp Duty Land Tax (SDLT) when you buy an additional residential property.
From 1 April 2016 the rates for Stamp Duty Land Tax (SDLT) will be higher if you buy an additional residential property for £40,000 or more in England, Wales and Northern Ireland.
You’ll also pay the higher rate if you buy a residential property in England, Wales or Northern Ireland and you already own one outside these countries.
Further information can be found in the Guidance note - Stamp Duty Land Tax: higher rates for purchases of additional residential properties.
SDLT rates for additional properties from 1 April 2016
|up to £125,000||3%|
|over £125,000 and up to £250,000||5%|
|over £250,000 and up to £925,000||8%|
|over £925,000 and up to £1.5 million||13%|
|over £1.5 million||15%|
How and when to pay
You must send an SDLT Return to HM Revenue and Customs and pay the tax within 30 days of completion.
Your solicitor, agent or conveyancer will file your return online for you, or if you’re not represented you can file a paper return yourself. When you fill in your return you must use code 04 for the ‘Property type at question 1’.
Replacing your main residence
You won’t pay the higher SDLT rates if the property you’re buying is replacing your main residence and that main residence has already been sold.
If you buy a new main residence but the sale for your previous main residence is delayed you’ll pay the higher rates as you own 2 properties.
But you can get a refund for the amount above the normal SDLT rates if you sell your previous main residence within 3 years.
A refund must be claimed within 3 months of the sale of the previous main residence or within 12 months of the filing date of the return, whichever comes later.
To claim a refund you can complete an online form.
If you already have 2 or more properties, and you sell your main residence, you won’t have to pay the higher rate if you buy a new main residence within 3 years.
Joint purchases or partnerships
If you are purchasing any properties jointly with other people and any of them already own one or more properties, you’ll need to pay the higher rates.
If you’re married or in a civil partnership, buying a property and your spouse or civil partner already owns a property you may still be liable to the higher rates. But you may be able claim a refund if they then go on to sell it.
Published: 16 March 2016
Updated: 30 August 2016
- Section on non-included properties has been removed.
- How and when to pay guidance has been added to say you should use property type code 04 when completing a return for an additional residential property.
- This has been updated to include information on how to claim a refund for the higher SDLT rates for additional properties.
- First published.